Bipartisan bill in Congress for online sales tax

screwthetaxpayer

From Simon Black of SovereignMan.com,  February 19, 2013:

In another brilliant move aimed at destroying the few table scraps of economic freedom which remain in the Land of the Free, a bipartisan group of esteemed lawmakers in the United States Congress has introduced the Marketplace Fairness Act of 2013.

Remember the golden rule of legislation: the more noble the name of the law sounds, the more disastrous its results. This one is no exception.

Generally speaking in the United States, retailers must collect state and local sales tax at the point of sale. When you walk into a Main Street shop in Anytown, California, you’ll pay the sticker price PLUS hefty city and state sales taxes that can easily be 10% or more.

But if you purchase goods through the mail from a company in, say, Nevada or Oregon, either through the mail or online, no sales tax is charged. This goes back to a 20+ year old US Supreme Court decision which exempted out of state companies from collecting sales tax.

Well, according to the intellectual luminaries in Congress, local retailers are at a disadvantage, effectively having to charge 10%+ more for their products than an out-of-state retailer.

And by God, they’re going to do something about it. After all, it’s just not ‘fair’ that mom and pop retailers on main street have to charge sales tax, while mom and pop retailers on the Internet do not.

The Marketplace Fairness Act of 2013 aims to level the playing field by requiring online retailers to collect some sort of sales tax from their customers. Needless to say, if the bill is passed, it will be the customer who ends up paying the price.

The thinking on this is completely absurd.

One of the primary reasons people shop online is because online retailers have reduced overhead costs, and these cost savings are passed along to consumers in the form of lower prices.

So if the idea is to ensure that brick and mortar retailers don’t suffer any competitive price disadvantage, why not just regulate prices altogether? Or even better, why not just abolish sales taxes altogether?

That’s because this bill has absolutely nothing to do with fairness, and everything to do with the government taking more of your money. This bill constitutes STEP 1 on the road to a national sales tax, which, given the state of national and state balance sheets, is a financial inevitability.

It’s the most insidious form of deceit– creating new taxes masquerading as ‘fairness’. It’s a total fraud, brought to you by the same people who tell us that there is no inflation, and that we must sexually assault airline passengers in order to protect ourselves from men in caves.

Have you hit your breaking point yet?

13 responses to “Bipartisan bill in Congress for online sales tax

  1. Your online retailer has shipping cost to get it out the door

  2. passing this on – more psyops on the masses
    “More information, some of it questionable, is coming out about the alleged “lone shooter” in Sandy Hook, CT. A special program will be aired tonight on Frontline, PBS, which includes background on Adam Lanza’s early life and his alleged psychiatric diagnoses.”

    http://wtpotus.wordpress.com/2013/02/19/sandy-hook-massacre-the-saga-continues/

  3. No doubt about it, the purpose of this proposal IS for the government to take more of our money. But that doesn’t necessarily exclude it from having fairness as a goal, too.

    I don’t know about all states, but here in California retailers are NOT required to collect sales tax from customers. They can pay the tax themselves if they really want to (sometimes, for the sake of one of those “the tax is on us” promotions, they do just that). For out-of-state sales, the seller is not required to pay sales tax – hence, no need for them to collect the sales tax reimbursement from the customer – but in many states, the buyer IS required to pay Use Tax on those same goods. Use Tax is calculated the same as Sales Tax. So if all those Californians (for example) who purchased stuff on the internet actually paid the correct Use Tax, they would have less incentive to buy out-of-state, and the California sellers would not have that competetive disadvantage. And maybe this Act never would have been created in the first place.

  4. Well, I for one think this is due. Why? Because the sales tax is a tax of doing business. Do internet and catalog sales not constitute business? If I go to my local WalMart, I pay 13% sales tax (8% state and 5% local). I bought $114 worth of groceries and miscellaneous. That’s a huge tax amount! I think some items must have not been taxed because it was only about $7 something I ended up paying as tax. Well, on the internet I could get almost everything except milk and pay $0 and have it delivered!

    If my state got a cut from business outside coming into Missouri, I think my taxes will actually go down because a lot of programs which are poorly funded are actually costing more–like mental health services and some education, transportation, and maybe social services. A glaring need in one area can make the end results in prison and medicaid costs soar by default.

  5. There has to be a special place in hell for politicians is All I can say! They are just insatiable.

  6. DCG,
    Maybe I was overly optimistic about taxes going down, but if you would consider 13% versus 0%, sales tax receipts must be very reduced because we buy so much on the net.

  7. Everyone should be treated equally. If I walk into a store and buy something and pay the sales tax then so also should the guy who bought it on the Internet. The Supreme Court is such a stupid group sometimes. It don’t matter if your in Alabama buying something in California. You still should have to pay the California sales tax.

    • Spoken like a true Calif . liberal idiot . The only reason you want other people in the country to pay your sales tax is because your gov’t employees pension fund is in the red soooooooooo bad , it will eventually BANKRUPT your piss-ant state . And you can’t tax all the rich folks anymore ’cause a lot of them are moving out of that cess-pool . ( PEOPLE OF COLO. TAKE NOTE , they are invading your state . Soon it will be called Calif.-east . )

  8. And on a second note even foreign countries should be paying the sales tax when they make a purchase on the Internet from a company in the USA. Stop allowing foreign countries to get away without paying the tax.

  9. Thank you Dr. Eowyn and Sovereign Man for this informative post. There is nothing more revolting to me than a representation that something is fair when it is the exact opposite, using language to forward an agenda. This is what the abortion industry has done. There is absolutely nothing fair about this alleged “fairness” bill, only more taxes and a punishment on those retailers who keep their overhead down so as to offer affordable prices to us. What next? Pretty soon the government is going to set price outlines for retailers! Get off our backs!

  10. Why don’t we just eliminate all taxes. We’ll just send all of our money to Wasnington and they can send us back what they think we need. After all we’re too stupid to know how to spend it properly.

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